AEPS stands for Aadhaar enabled Payment System. It's a user-friendly, safe, and secure payment platform that allows individuals to access benefits by using their Aadhaar number and biometric authentication. In essence, it facilitates financial transactions through Aadhaar authentication.
Key Features of AEPS:
- Aadhaar Authentication: AEPS utilizes the unique Aadhaar number for identification and verification during transactions.
- Biometric Verification: Instead of relying on PINs or passwords, AEPS uses biometric data (like fingerprints) for secure authentication.
- Accessibility: It aims to reach underserved and unbanked populations by enabling them to access financial services through readily available channels like micro-ATMs and business correspondents.
- Secure Transactions: With Aadhaar and biometric verification, AEPS provides a more secure method of conducting financial transactions compared to traditional methods.
- Benefit Transfers: Facilitates direct benefit transfers (DBT) from government schemes and other sources directly into the beneficiary's Aadhaar-linked bank account.
How AEPS Works:
- A customer visits a banking correspondent or micro-ATM.
- The customer provides their Aadhaar number.
- The customer selects the type of transaction (e.g., cash withdrawal, balance enquiry).
- The customer authenticates the transaction using their fingerprint.
- The transaction is processed, and the customer receives confirmation.
Benefits of Using AEPS:
- Convenience: Easy access to banking services, especially in remote areas.
- Financial Inclusion: Brings banking services to the unbanked population.
- Secure Transactions: Reduces the risk of fraud with biometric authentication.
- Direct Benefit Transfers: Ensures efficient and transparent transfer of government benefits.
